Commoditrader is a new online trading platform for efficient forwards trading of grains and agricultural commodities. Now open for trade in Denmark and soon available for Eastern Europe and the Baltic countries.
The future of farming has become more digital and now the time has come to digitise agricultural trade of agricultural commodities. The new platform Commoditrader is aiming to do just that: streamlined trade flows, better prize insights and a wider reach in the purchasing and marketing of crops. It is the first platform for commodities which allows market participants to cover their positions in the physical market while at the same time ensuring transparent pricing through logistics calculations and handling. Commoditrader facilitates the trade between 2 parties, but never takes an active part in the trade itself. The platform offers its users access to credit ratings, logistics management and other services related to the trade. The basic version of the platform will always be free to use, while additional functions can be purchased through subscription.
Less broker fees and other transaction costs
“With Commoditrader we want to push for a positive development in the industry. Whether you are in the market as a seller or buyer, Commoditrader is built to support direct trade flows and market access among grain and protein producers, feed mills and trade houses, while minimising broker fees and other transaction costs related to the trade. Sometimes we see contracts shifting hands more than 7 times, with several brokers in between before being delivered at the feed mill – this really changes the calculation of the feed manufacturer quite a lot,” says Ida Boesen, co-founder of Commoditrader. “Commoditrader is not just a digital bulletin for grain merchants, it is a marketplace that incorporates the whole process of commodity trading. Also, we will continuously be adding new features to provide our users additional necessary tools and services useful to their daily business,” adds co-founder Julie Karl Koch Fahler.
Commoditrader facilitates the trade between 2 parties, but never takes active part in the trade itself. Photo: Commoditrader
Behind the platform is a group of Danish investors who set up the platform with 2 business developers, Ida Boesen and Julie Karl Koch Fahler. Jytte Rosenmaj and Ole Bjerremand Hansen, founders of the 28,000 sows swine productions Idavang in Lithuania and Russia, are some of the investors behind Commoditrader, and they have no doubt about what Idavang and other producers can gain by trading on the platform. “At Idavang, one of our main priorities is to reduce feed costs, as this cost amounts to well over half of our production costs. I therefore see the platform as a unique opportunity for us to ensure competitiveness on both terms and pricing, when we enter the market to trade, as all sellers of soybean meal and grains can show their offers on the platform,” says Jytte Rosenmaj, Vice Chairman of the board at Idavang A/S.